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1.A company's management accountant is analysing the reject rates achieved by 100 factory operatives working in identical conditions. Reject rates, Y%, are found to be related to months of experience, X, by this regression equation ： Y = 20 - 0.25X. (The correlation coefficient was r = -0.9.)
Using the equation, what is the predicted reject rate for an operative with 12 months' experience?
A.17%
B. 19%
C. 20%
D. 23%
2.A regression equation Y = a + bX is used to forecast the value of Y for a given value of X.
Which TWO of the following increase the reliability of the forecast?
A. A correlation coefficient numerically close to 1
B. Working to a higher number of decimal places of accuracy
C.Forecasting for values of X outside the range of those used in the sample
D.A large sample is used to calculate the regression equation
